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Connected TV advertising grows in Europe

February 28, 2018 08.09 Europe/London By Broadband TV News Correspondent

Video advertising delivered over the internet to TV screen will be worth €825m by 2020, according to research by MTM and SpotX.

The UK is predicted to generate largest revenue while Italy is set for the fastest annual growth amongst European ‘Big 5’ countries

The advancement of AVOD (advertising-funded Video-on-Demand) technology and the desire from brands and agencies to advertise alongside premium programmes has increased steadily, and the research shows that the market is now set for rapid growth across the big five TV advertising markets in Europe.

The UK is Europe’s largest market for connected TV advertising, expected to be worth €250m in 2020. The UK market will have a 19% compound annual growth rate (CAGR) which will be achieved through increased user engagement with connected TV technology combined with broadcasters’ commitment to providing market leading services such as the ITV Hub and BBC iPlayer.

Rapid connected TV advertising growth takes place in Italy with participants in the research predicting an 80% CAGR between 2016 and 2020. The market is forecast to be €105m in two years time, growing from €10m in 2016. Developments in audience measurement signal the Italian industry is preparing for adoption as consumer interest in video on demand increases.

Alongside a strong culture of IPTV, France will have the second highest connected TV advertising revenue with industry experts anticipating €240m to be generated by advertising delivered via the open internet to the TV screen in 2020. Market drivers such as good broadband penetration and speed are in place to sustain this growth and broadcasters will increase their investments into connected TV apps and services.

The growth of connected TV advertising in Germany goes from €50m in 2016 to €125 in 2020 with a CAGR of 24 percent, forecasting Germany to be the third largest market in two years time. The market enablers displayed in the infographic show that the investment is being made in the German market but that user adoption is slightly behind other countries in Europe with 50% of the population owning a smart TV.

Connected TV advertising in Spain reached €45m in 2016 with growth expected to reach €105m in 2010 which will equal revenues generated in Italy. Spain will see a predicted CAGR of 24% driven by demand from advertisers and agencies for connected TV inventory and by increased penetration of smart TVs in the market.

Mike Shehan, co-founder and CEO at SpotX explains, “The data shows the dramatic rise of adoption of connected TV advertising across Europe, reflecting the growth we have experienced already in the US. The story has been reflected by our own expansion at SpotX working with leading European innovators such as STV, TV Player, Zattoo, The Box and Dugout on their strategies for global connected TV advertising revenue. The UK, France, and Germany are leading the adoption of connected TV advertising in Europe, followed by emerging markets with high potential including Spain and Italy.”

Nick Thomas, Associate Director at MTM adds, “Broadcasters are embracing the cross-device mindset of their digital-first audiences and advertisers clearly recognise the impact of their advertising appearing on the TV screen to targeted audiences.”

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Filed Under: Connected TV, Newsline, Research Tagged With: MTM, SpotX Edited: 28 February 2018 08:10

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